I have an offer at agro. Total comp is like 800k! But based on only 212k. Rest is all profit units. I have no AI experience so far. What do people think?
what is argo
Argo = autonomous vehicles
I didn't take a job specifically because of offer of profit units. They were structured to have tac advantages, but were also based on the company achieving a profit level that I thought was unrealistic. The company was not able (willing?) to provide more details of potential value for lower profit levels and how an acquisition would be handled. I ended up going with a public company so I could at least properly value the offer.
I talked with the recruiter in some detail and this is what I understand about the profit part of the equity. They have offered you Argo Incentive Units (ACI). What they will tell you is, if the company IPO’s at $8 billion, your X ACI’s will be worth Y dollars. Where did this magical $8 billion come from? This is their target IPO valuation. What’s their current valuation? Something definitely much less than $8 billion but they won’t disclose that number. If they IPO at 1 billion dollars, your X ACI’s will be worth Y/8 dollars; if they IPO for 16 billion dollars, it will be worth 2Y. If they never IPO, it will be 0 dollars. So it’s just a linear/straight line interpolation. But the bottom line is it’s not necessary for the company to be profitable for your ACI’s to have some monetary value; however they have to IPO though to have any value. The other option is if they are sold to a bigger company and I am not sure how ACI’s will be evaluated then.
No. But they have a valuation now and it’s around 4 billion.
Hi, op, Do they give you around 600k profit per year? 2.4m in total?
What the heck is a profit unit?